Equity Release

Certified Financial Advisors can help you get the most out of your retirement and maximise your income via an equity release scheme.

Equity release plans are also called lifetime mortgages, home income plans or home reversions. These equity release schemes essentially allow you to borrow money against the value of your home so that you have more money to enjoy your retirement.

Whilst there are different types of equity release schemes they all work off of the same principle in that you are given a tax free lump sum or regular income and the debt is repaid from the sales proceeds of your home after your death. With an equity release scheme you do not have to sell or move out of your home.

Many people have inadequate pension funds to sustain a good quality of life following retirement but many own homes with a substantial amount of equity. Equity release schemes make use of this so that you can have more money to enjoy retirement whilst not having to move or sell your property.

Home reversion schemes

Homes reversion schemes involve selling your home whole, or in part, in exchange for a lump sum or regular income. With a home reversion scheme you essentially become a tenant but you don’t have to move home or pay rent. Home reversion schemes typically pay out up to 50% of the current value of your home.

Home income plans

A home income plan is a type of equity release scheme in which you take out a mortgage against your home and use the money to buy an annuity which gives you a regular income until death. With a home income plan you don’t have to move house and the mortgage payments are deducted from the income. The home income plan mortgage is eventually repaid after your death from the sales proceeds of the home.

Lifetime mortgages

Lifetime mortgages are a type of equity release plan which involves you receiving a lump sum or regular income by placing a mortgage against your home. You don’t have to make any payments on the lifetime mortgage and the amount you borrowed plus interest is repaid from the sale of your home after death. For a lifetime mortgage you can borrow about 50% of the value of your property.

Other things to consider with Equity Release

Equity release plans are a great way of helping you make the most of your retirement. By their very nature equity release plans mean your home will not be left as inheritance to your loved ones, something which may incur a 40% inheritance tax. Equity release schemes are a great way of avoiding inheritance tax because you can pass the lump sum payment to your loved ones tax free. For further information on equity release plans please fill out an enquiry form and a certified financial advisor will contact you shortly.